Is Windows Mobile 7, the Zune phone ?

As we get closer and closer to Mobile World Congress, speculations and rumors has once again arose about the Zune Phone. Some say that it is a mobile phone made by Microsoft while others say that it is branded but not manufactured by Microsoft. Another section says that it is just Windows Mobile 7 with Zune features which I believe is more likely.

After Long Zheng found some references about Zune Phone in the latest Zune Update, Neowin contacted Microsoft and this was the reply

“we have no plans to create a Zune phone.” The spokesperson also stated that one day Zune could be “part of the phone experience”

And here is some details about Windows Mobile 7 that is about to be showcased in Mobile World Congress as per PPCGeeks.com

The User Interface is based upon codename “METRO”. It will be very similar to the Zune HD User Interface with a complete revamp of the “Start” screen. The UI is “Very Clean”, “Soulful” and “Alive”
Unfortunately there will be no Flash support at the get go as there was not enough time to implement these features.
Windows Phone 7 will only support application installation through service based delivery. (i.e Marketplace). Application installation via storage card will not be possible.
No Multi-Task support. Applications will “Pause” when in the background, however will support notifications via push notifications.
Marketplace will now support “try before you buy” as well as an API
No NETCF backwards compatibility. This means the original rumor of no backward compatibility for applications holds to be true. That being said, there are high hopes of porting the NetCF to the newer platform easily.
Microsoft is confident that devices will be ready by September 2010
Full Zune Integration
Windows Mobile Device Center will no longer be used. Zune software to take over syncing via PC.
OEM Interfaces will not be allowed to run on the device. Say goodbye to Sense UI / SPB Mobile Shell / Point UI / Infinity, etc, etc
Full XBOX Gaming Integration (Gamer tag, achievements, friends, avatars, merchandising, etc)
Full support for social networking

Just look at the points in bold. This makes my belief stronger that Zune Phone is actually Windows Mobile 7 itself.

Let’s hope the things get much clearer at the Mobile World Congress 2010.